Forming a US company gives you no right to work there. It is one of the most common surprises for European business owners. To run your subsidiary on the ground you need the right status, and the two routes SMEs use most are the E-2 and the L-1 visas.

What you can do without a work visa

With an ESTA (Visa Waiver Program, stays of up to 90 days), an executive can attend meetings, negotiate, and visit trade shows or clients. They cannot do productive work for the subsidiary or be paid by it. Once the presence becomes regular and operational, a proper visa is required.

The E-2 investor visa: the SME route

The E-2 is reserved for nationals of countries with a qualifying treaty with the US. France, Belgium, Switzerland, Luxembourg and Canada are all treaty countries, according to the State Department. The requirements published by USCIS:

  • a substantial investment relative to the cost of the business created or bought (there is no fixed minimum: the smaller the project, the higher the share invested must be);
  • a non-marginal enterprise, able to generate more than the investor’s own living, or to do so within five years;
  • at least 50% ownership by nationals of the same treaty country, or operational control;
  • an initial stay of up to two years, extendable in two-year increments with no limit on extensions;
  • employees of the same nationality can qualify in executive roles or with essential skills, and spouses are authorized to work.

Watch out: a subsidiary owned 50/50 by partners of different nationalities may fail the 50% test. Check the cap table before formation.

The L-1 visa: intracompany transfer

The L-1A lets a company transfer an executive or manager from a foreign company to a related US entity (subsidiary, branch, affiliate). Main conditions:

  • the person must have worked at least one continuous year within the past three years for the foreign company;
  • for a new office, the initial stay is limited to one year, after which the business must show it has genuinely developed;
  • total time in L-1A status is capped at seven years.

The L-1 therefore requires a real group in Europe. It does not work for a company formed yesterday.

E-2 or L-1: how to choose

  • E-2 if the investment comes from nationals of a treaty country and the US project is self-standing and funded.
  • L-1 if the European company is well established, the executive has worked there for more than a year, and the group structure is clear.
  • Neither is a green card: both are temporary statuses tied to the business.

What makes an application succeed or fail

  1. A credible business plan: market, forecasts, hiring, consistent with the amounts invested.
  2. Traceable funds actually committed to the project (contracts, lease, equipment), not just sitting in an account.
  3. A legal structure compatible with the target visa (ownership, nationality, group links).
  4. A realistic timeline: the company, bank account and first commitments must exist before filing.
Key takeaway

The visa is prepared together with the structure, not after it. A poorly capitalized or poorly owned company can make the visa impossible, and a weak file can delay the whole market entry by months.

Frequently asked questions

Is there a minimum investment for the E-2 visa?

No. The investment must be “substantial” relative to the total cost of the project. The smaller the project, the higher the proportion invested must be.

Can I work for my subsidiary on an ESTA?

No. ESTA allows meetings, negotiations or trade show visits, not productive work or pay from the subsidiary.

Can the spouse of an E-2 holder work?

Yes. According to USCIS, spouses in valid E-2 status are employment authorized incident to status.

Sources

External links checked on October 24, 2026.

This guide is not immigration advice. Any visa application should be prepared with a specialized US immigration attorney.

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